TheNFAPost Podcast

Bengaluru, NFAPost: The “European Animation, VFX & Video Games: Strategies, Trends & Opportunities (2021-25)” report has just been added to’s offering as the European animation industry is growing fast and an increasing number of films produced in Europe have attracted global audiences with their distributions going worldwide.

The boom in European animation can be attributed to its world-class animation training schools, funding schemes, government tax incentives, Europe-wide as well as global collaborations through co-productions and availability of world-class talent.

Europe produces about 40 animation films every year. About 15% of European movie admissions go into animation and one-fifth of admissions to animation films in Europe go to European productions. However, the market is dominated by American films who garner about 70% of admissions.

The trend is in favour of local European animation productions as far as TV animation series is concerned. There are over 300 children’s channels in the EU as well as specific on-demand services for kids. Moreover, about 65% of animation content on European TV channels is produced locally.

European animation productions targeted at television have achieved global success, however, in the case of movies, it is the major American studios that dominate the market. Film-based content such as video or mobile games is on the upswing giving rise to new partnerships as well as new business and revenue models.

Given the global economic crunch, producers need to diversify their sources of funding and explore sources such as co-productions, equity financing, and other forms of loans. The demand for animation, VFX and video gaming has expanded with the increase in targeted broadcasting hours by cable and satellite TV, availability of low-cost internet access, penetration of mobile devices along with the growing popularity of streaming video.

In addition, the demand for Animation and VFX content to power immersive experiences such as Augmented Reality and Virtual Reality is growing exponentially. The rapid advancement of technology has made animation, VFX & games available to the masses, and this industry has become one of the fastest-growing segments in the global media and entertainment market.

We are increasingly seeing more animation, VFX and games production taking place in a globally distributed mode. Production work is becoming global with countries as well as regions offering tax incentives, subsidies, financial support, regional low labor costs, etc. and companies are cutting costs by setting up facilities in such regions.

Cloud computing is playing a key role in character rendering and modeling processes as the cloud-based rendering of animation films is more effective and efficient as it reduces the time and cost compared to traditional rendering.


  • The market size of the European Animation & VFX industry was US$ 43.7 billion in 2020
  • Most of the segments in the animation industry are growing at a rate of 2% YoY
  • The production cost per animation movie ranges anywhere between US$ 20 Million to US$ 300 Million
  • The spend on special effects as a percent of production cost in Europe is about 20%-25%
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